On January 1, 2024, the Mountain Company agreed to purchase a building by making six payments. The
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On January 1, 2024, the Mountain Company agreed to purchase a building by making six payments. The first three are to be $25,000 each, and will be paid on December 31, 2024, 2025, and 2026. The last three are to be $40,000 each and will be paid on December 31, 2027, 2028, and 2029. Mountain borrowed other money at a 10% annual rate.
Required:
1. At what amount should Mountain record the note payable and corresponding cost of the building on January 1, 2024?
2. How much interest expense on this note will Mountain recognize in 2024?
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Requirement 1 Present value of payments 46 PVA 40000 x 248685 99474 ...View the full answer
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